Netflix, Inc. : Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Netflix, Inc.
01/20/2012| 07:30pm US/Eastern
Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/nflx)
announces that a class action lawsuit has been filed in United States
District Court for the Northern District of California on behalf of
purchasers of the common stock of Netflix, Inc. ("Netflix" or the
"Company") (NASDAQ: NFLX) between December 20, 2010 and October 24,
2011, (the "Class Period").
For more information regarding this class action suit, please contact
Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877)
316-3218 or by email at email@example.com
or visit: www.rmclasslaw.com/cases/nflx.
The Complaint alleges that Netflix and certain of its officers and
directors violated federal securities laws. Specifically, defendants
failed to disclose the following: (1) Netflix had short-term contracts
with content providers and defendants were aware that the Company faced
the choice of renegotiating the contracts in 2011 at much higher rates
or not renewing them at all; (2) content providers were already
demanding much higher license fees, which would dramatically alter
Netflix's business; (3) defendants recognized that Netflix's pricing
would have to dramatically increase to maintain profit margins given the
streaming content costs they knew Netflix would soon be incurring; and
(4) Netflix was not on track to achieve the earnings forecasts for 2011.
On October 24, 2011, Netflix reported a net loss of 810,000 U.S.
subscribers and, disclosed in a subsequently filed Form 10-Q, that
Netflix's obligations for content over the coming years had skyrocketed
to $3.5 billion, with $2.8 billion due within three years. On this news,
Netflix stock plunged from $118.84 on October 24, 2011 to $80.86 on
October 27, 2011.
If you are a member of the class, you may, no later than March 13, 2012,
request that the Court appoint you as lead plaintiff of the class. A
lead plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim is
typical of the claims of other class members, and that the class member
will adequately represent the class. Under certain circumstances, one or
more class members may together serve as "lead plaintiff." Your ability
to share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. You may retain Ryan &
Maniskas, LLP or other counsel of your choice, to serve as your counsel
in this action.
For more information about the case or to participate online, please
or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or
by e-mail at firstname.lastname@example.org.
For more information about class action cases in general or to learn
more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan &
Maniskas, LLP is devoted to protecting the interests of individual and
institutional investors in shareholder actions in state and federal
Ryan & Maniskas, LLP
Richard A. Maniskas, Esquire
© Business Wire 2012